Travel

Budget airline to furlough thousands of employees amid bankruptcy, reports say

Budget airline to furlough thousands of employees amid bankruptcy, reports say

Spirit Airlines will furlough nearly a third of its flight attendants this year, according to multiple reports.
Around 1,800 of the over 5,000 flight attendants employed by the low-cost carrier will be affected, according to a report from USA Today.
The move could affect holiday travel as the furloughs are expected to take effect beginning on Dec. 1, according to Business Insider.
The decision comes as Spirit Airlines navigates a recent bankruptcy filing.
“As part of our ongoing restructuring, we are taking steps to align staffing with our fleet size and expected flight volume,” the airline told CBS News in a statement.
Spirit has faced several financial challenges in recent months.
Beginning on Oct. 2, Spirit Airlines will also cut flights to 11 U.S. cities, primarily in the Southern and Western portions of the country.
Spirit Airlines also previously filed for Chapter 11 bankruptcy protection in November 2024.
The airline, which has struggled financially since 2019, made headlines in January after a federal judge blocked a planned merger with JetBlue Airways.
At the time, The New York Times reported that the airline admitted in court filings that it had a total of $9 billion in debt. The company said in a press release that its shares would soon be delisted from the New York Stock Exchange.
Founded under a different name as a trucking company in 1964, the company later morphed into a tour operator before offering its first flights in 1990 and taking on the name Spirit Airlines in 1992. The airline began focusing on low-cost sales in 2006.